Modern Luxury has just sold a majority control to Clarity Partners, the Los Angeles-based investment firm. The deal ends the involvement of Roy E. Disney's Shamrock Capital in the firm.
Sources said the deal was for $242 million for the publisher of regional magazines in about 13 cities with titles that include CS (formerly Chicago Social), Angelino, Riviera, Atlantan, and hotel books including Front Desk Chicago and Front Desk Los Angeles. All are free-circulation titles that focus on luxury markets.
The company is believed to have sold for about 12- to 13-times its earnings, which is considered a high premium for a publishing company. Disney and his partners at Shamrock had invested $50 million in the company in 2004 for a majority control.
Michael Kong and his brother Stephen founded the company in Chicago 1994. They're going to be staying on board under the new ownership. Kong said, "We have some very aggressive expansion plans in the next five years, through both startups and acquisitions." Next on deck is a planned excursion into Miami with a new magazine to be called, aptly, Miami. Leslie Wolfson, former publisher of rival Ocean Drive, is already on board as the Miami publisher, which is expected to launch in September.